Bitcoin Correction. Are we there yet?
Complete correction path possibilities.
This chart is pretty much the same as our previous one, except with a few extra lines.
As stated before, neither of these correction completion paths may come to play, however, being aware of the possibilities can allay any fear, uncertainty, or doubt.
The white ABCDE sub waves would represent the completion of an ABC correction. These lines have been altered slightly since our last chart, and the major (C) wave has not been drawn to that end point.
The orange major ABCDE correction path is fairly self explanatory. Both paths lead to the same price end point, except this one would take more time.
For reference purposes we have also added Major and Minor Fibonacci retracements, with the major one being from the beginning of time, and the minor one starting form the beginning of the last major uptrend.
So, why have we chosen approximately 7609K as the bottom of the possible correction?
1. It happens to line up with the major 0.618 Fibonacci. (Strong support expected here.)
2. It also forms a trend line with the bottom of the (B) and (D) end points of the purple major ABCDE bull run. (See orange dotted line.)
Key points as to why this should be the maximum correction:
Apart from the Mt. Gox era, Bitcoin tends to correct to around 50% of it’s gains. (Two steps forward, one step back.)
In this current situation, Bitcoin has already corrected past the 50% major Fibonacci line to just under 9200K.
A correction to 0.618 Fibonacci would obviously represent a correction of over 60%. (This would be a healthy correction moving forward.)
In this current crypto sphere with more investors, more coins, more reliable exchanges and some Alt coins just waiting for Bitcoin to get it’s sh*t together so that they can spring back into action, a correction lower than this is highly unlikely. (Not impossible though.)
What to look out for?
1. In the short term, watch the white ABCDE (E) sub wave.
2. If the price heads up, keep an eye on the orange (D) in the ABCDE correction, 0.382 minor Fibonacci. (Around 14300K.)
3. If it struggles to break this line, prepare for the orange (E) wave.
4. If it happens to clearly burst bullish through this line, you can file this chart away in your keepsake box.
Note: The Elliot wave lines may not exactly match the paths, so keep an eye on the Fibonacci price lines.
Thanks for reading.